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Bank of America (NYSE:BAC) Q2 earnings beat Wall Street expectations as sales and trading revenue growth bolstered the bank’s Global Markets unit. BofA stock gained 2.6% in Tuesday premarket trading.
“Our Global Markets business delivered its ninth consecutive quarter of year-over-year revenue growth in sales and trading, earning double-digit returns,” said Chairman and CEO Brian Moynihan.
The bank expects Q4 net interest income to rise to ~$14.5B, according to the company’s earnings slides. That compares to the Visible Alpha consensus of $14.4B.
Q2 EPS of $0.83, exceeding the average analyst estimate of $0.80, was flat with Q1 2024’s adjusted EPS and declined from $0.88 in Q2 2023. The Q1 adjusted figure excludes the company’s FDIC special assessment expense.
Net interest income (FTE basis) of $13.9B, matching the Visible Alpha consensus of $13.9B, declined from $14.2B in the prior quarter and $14.3B a year ago.
Noninterest income of $11.7B, topping the $11.4B Visible Alpha estimate, dipped from $11.8B in Q1 and increased from $11.0B in Q2 2023.
Provision for credit losses came to $1.51B climbed from $1.32B in the previous quarter and $1.13B in the year-ago period.
Q2 noninterest expense, excluding its FDIC special assessment, was $16.3B, down from $16.5B in Q1 and up from $16.0B in Q2 2023.
Bank of America’s (BAC) adjusted return on average tangible common shareholders’ equity was 13.6% vs. 13.8% in the prior quarter and 15.5% a year ago.
Average deposits were $1.91T, roughly flat with Q1 and up from $1.88T in Q2 2023.
Consumer Banking revenue was $10.2B vs. $10.2B in Q1 and $10.5B in Q2 2023; net income of $2.60B declined from $2.66B in the prior quarter and $2.85B a year ago. Average deposits of $949.2B fell from $952.5B in Q1. Combined credit/debit card spending of $234B rose 3% Y/Y.
Global Wealth and Investment Management revenue of $5.57B dropped from $5.59B in the prior quarter and rose from $5.24B a year ago; net income of $1.03B increased from $1.01B in Q1 and $978M in Q2 2023. Client balances of more than $4T rose 10% Y/Y, driven by higher market valuations and positive net client flows.
Global Banking revenue of $6.05B grew from $5.98B in the previous quarter and declined from $6.46B in the year-ago period; net income of $2.12B increased from $1.99B in Q1 and dropped from $2.65B in Q2 2023. Average deposits of $525B rose 6% Y/Y and average loans and leases of $373B dropped 3% Y/Y.
Global Markets revenue of $5.46B dipped from $5.88B in the previous quarter and jumped from $4.87B a year ago; net income (ex-DVA) declined to $1.41B from $1.79B in the previous quarter and increased from $1.18B in Q2 2023. Sales and trading revenue, excluding net DVA, increased 7% Y/Y.
Conference call at 8:30 AM ET.
Earlier, Bank of America GAAP EPS of $0.83 beats by $0.03, revenue of $25.4B beats by $200M
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